De La Rue to Sell Authentication Arm to Crane NXT

Crane NXT, an industrial technology company specializing in security and authentication, has announced its acquisition of De La Rue’s authentication business for £300 million (about $391.3 million). The move marks a significant step in Crane NXT’s expansion strategy, enhancing its portfolio with advanced security technologies and solutions that cater to government and corporate clients.

De La Rue, a British company with a long history in security printing and currency solutions, has been seeking ways to bolster its financial position. The sale of its authentication arm will allow De La Rue to reduce its debt burden and address its pension deficit, a legacy issue that has impacted the company’s financial health. CEO Clive Vacher noted that the funds from the sale will be directed toward strengthening the company’s balance sheet, enabling De La Rue to focus on its remaining core business of currency production—though that business could go up for sale, too.

“We remain in conversations about the possible sale of the currency business, but that process is further behind this one,” Vacher said.

The news comes after De La Rue sold its international identity solutions business to HID Global in 2019, making it the latest in a series of acquisitions that HID had pursued toward the end of the decade.

The authentication arm of De La Rue provides secure document solutions, including tax stamps, brand protection services, and other security features aimed at authenticating goods. These services are integral to government and tax authorities worldwide, assisting in the prevention of counterfeiting and ensuring the integrity of supply chains.

For Crane NXT, the acquisition not only enhances its portfolio but aligns with its mission to provide trusted technology solutions for securing and authenticating valuable assets. Crane NXT, which was recently established as an independent entity following the split of Crane Holdings, has been actively pursuing growth through strategic acquisitions.

De La Rue’s authentication business also aligns well with Crane NXT’s existing operations, which include proprietary micro-optic technology and sophisticated detection and sensing solutions for various industries. By incorporating De La Rue’s expertise in physical and digital authentication solutions, Crane NXT will be able to offer enhanced security solutions for government-issued documents, tax enforcement, and brand protection.

Source: Reuters

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October 16, 2024 – by Cass Kennedy